NATIONAL UNIVERSITY MOQUEGUA

Professional School of Mining Engineering

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 NATIONAL UNIVERSITY MOQUEGUA
Professional School of Mining Engineering

INDEX
INTRODUCTION ..................................................................................................... .......3
OBJECTIVES .................................................................................................................. .4
CHAPTER I
CONCEPTUALIZATION OF MINING TRAINING .....................................................5
1.1.The division of mining by scales ................................................................................6
1.1.1. Categories of legal classification of mining producers ........................................6

CHAPTER II

THE REGULATION OF THE MINING FORMALIZATION

2.1. Legislative initiatives for the formalization of small mining industry ......................8

CONCLUSIONS.............................................................................................................. .9
BIBLIOGRAPHY ........................................................................................................... 10

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 NATIONAL UNIVERSITY MOQUEGUA
Professional School of Mining Engineering

INTRODUCTION

This report analyzes the rules of the legal measures taken by the Government in the
process of mining formalization between the periods of 2012 to 2017, in order to be able
to determine what the criteria adopted by the Peruvian government in the fight against
informality in small-scale mining activities and verify if these mechanisms have
contributed to the effective eradication measures.

In that vein, with the first chapter seeks to explore the differences between each
classification category of mineral producers in Peru, by evaluating the criteria for
classification by the state. Then he will mention the link between small mining producers
and miners formalization process in order to determine the viability of their attachment to
that category. The second chapter, analyze the political and legislative developments in
the mining formalization of the periods referred between 2012 to 2017, then mention
some of the major governing bodies related to small-scale mining and its role in the
process formalization.

In conclusion, administrative simplification pursued by the Government has been positive

in some respects, has left other important side as land use planning in areas where these
activities take place, returning to a less beneficial for the eradication of mining informal
sector management.

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 NATIONAL UNIVERSITY MOQUEGUA
Professional School of Mining Engineering

OBJECTIVES

 Knowing the process of formalizing mining for knowledge and subsequent

application in the professional field of a mining engineer, being beneficial for their
various legal advantages.

 Make a concise analysis of the processes of mining formalization from 2012 to the
present, in order to determine the bias between the conception of the State of
formalization and consequent obtaining layer of small-scale mining, with respect
to the display miners themselves who are part of this process.

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 NATIONAL UNIVERSITY MOQUEGUA
Professional School of Mining Engineering

CHAPTER I

CONCEPTUALIZATION OF THE MINING FORMALIZATION

In order to develop this first chapter, it is appropriate to cite first the concept of "Mining
Informal" which, as stipulated in Legislative Decree No. 1336, Legislative Decree
establishes provisions for the process of comprehensive mining formalization like. "The
mining activity in areas not prohibited by any person, natural or juridical, who is registered
in the Integral Register Formalization Minera complying with the rules of administrative
and also the conditions provided for in Article 91 of the Consolidated Text of the General
Mining Law, approved by Supreme Decree No. 014-92-EM" (2017). While the concept in
question is limited to enrollment informal mining in Minera Formalizing Registration
Integral, that definition as such, It was not always so clearly established. Initially, the
problems of informality and illegality were closely related, since the criteria of
differentiation existed between them were not clear, since there was a percentage of the
population was engaged in the exploitation of these resources illegally and another that
It performed this activity as a livelihood. For this reason, state intervention was necessary
to clarify the difference between the two. In this regard, the Ministry of Environment
identified that it must cover three fronts:

a) Formalization as a gradual and progressive process that allows to face the major
challenges of the miners so they can access the formalization.
b) Control of mining activity, which in turn has three sides: environmental and
administrative control, including in the latter control of chemical inputs, fuel,
marketing gold and safety standards, among others.
c) Interdiction and criminal actions, and remediation of environmental liabilities and
the care of social problems generated as a result of this illegal activity. While these
elements were the pillars of the consolidation of a policy of formalization, it was
necessary to first define what the real miners strata plausible were subject to being
formalized.

1.1. The mining division by scales

1.1.1. Categories of legal classification of mining producers

A. General scheme

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 NATIONAL UNIVERSITY MOQUEGUA
Professional School of Mining Engineering

 Large mining producer: The big mining producer, is one with a maximum
degree of development and optimization in the industry. It characterized in
that its exploitation is open pit or galleries; mechanization is high, high
investments and an integrated operation.
 Mining producer medium: The medium mining producer, is one that is in
the middle range between the small and large mining. Medium-scale mining
is the degree of optimization and advancement of small-scale mining. It is
characterized in underground mining and related machining. "At present,
the current mining legislation has not conceptualized medium mining, and
less indicates the conditions for qualification".

B. Special regime

According the provisions of Article 91 TUO of the General Mining Law,

approved by Supreme Decree No. 014-92-EM slogan:

 Small mining producer (SMP): It may be a natural person or legal entity

made up of natural persons or mining or central cooperatives commonly
mining cooperatives engaged in exploitation and / or direct benefit of
minerals. The PPM, is characterized by performing underground mining,
low machining. Has any degree (denounce, request or mining concession)
not exceeding 2 000 hectares and possesses any of these titles, taken
individually, an installed not more than 350 MT / day capacity.

 Artisanal mining producer (AMP): It may be a natural person or a legal

person or legal entity made up of natural persons, or mining or central
cooperatives mining cooperatives are usually engaged and their
livelihoods, exploitation and/or direct benefit of minerals, conducting
business methods manuals and/or basic equipment. AMP holders, for any
reason, up to 1000 hectares between denouncements, petitions and mining
concessions, and those with an installed production and profit of 25 MT/day
is usually dedicated capacity and their livelihoods, exploitation or direct
benefit of minerals, conducting business with manual methods and basic
equipment.

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 NATIONAL UNIVERSITY MOQUEGUA
Professional School of Mining Engineering

CHAPTER II

THE MINING REGULATIONS OF EXECUTION

Formalization mining today is one of the most significant objectives proposed by the State
in order to achieve comprehensive development. It is oriented to consolidate within the
framework of sustainable growth, which has as main premise compliance with current
regulations, which must be approached from the perspective of informal mining in the
process of formalization. In that vein, it will be necessary to analyze the regulatory periods
relating to the mining formalization from 2012 to the present, in order to understand how
this problem happened to take prominence on the political agenda of the country. And
ultimately, check what role played by various governing bodies in the process of
formalizing mining.

2.1. Legislative initiatives to formalize small-scale mining

On April 19, 2012 it is available Legislative Decree No. 1105-2012 - Legislative

Decree establishes provisions for the process of formalizing the activities of small and
artisanal mining. Pursuant to the Medina, this standard concepts of illegal mining,
informal and consequently redefine what is said formal mining. In addition, the above
mentioned author points out that emphasized the concept of "process", determined
in six steps to formalize, they were:

1) Presenting Declaration of Commitment.

2) Accreditation of Ownership, Assignment Agreement, Operating Agreement or
Contract for the mining concession.
3) Accreditation of ownership or authorization for use of surface land.
4) Authorization to use water.
5) IGAC approval.
6) Authorization for start / restart of exploration, exploitation and / or processing of
minerals.

At this point, it specifies that the rule said that some permits could be performed
simultaneously once was presented the Declaration of Commitment, which in reality was
not as feasible because the authorization certificates obey a Prelativ nature; which in the
present case it reflects the main bottlenecks in the mining formalization during this
process, which were the title and other meanings as well as obtaining the right to use the
surface area.

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 NATIONAL UNIVERSITY MOQUEGUA
Professional School of Mining Engineering

Legislative Decree declares of national interest the formalization of the activities of small
and artisanal mining that aims to declare national interest the restructuring process
formalization - the 29 December 2016 Legislative Decree No. 1293 is issued activities of
small and artisanal mining that Legislative Decree No. 1105. Integral Registry of Mining
Formalization, which will consolidate, unify and standardize the information in the
administrative records by the MINEM is created through concerns Directorate General of
mining Formalization, consistent and orderly by using an interconnected computing
platform that will allow the identification of informal miners by the RUC.

On 22 October 2017 the Supreme Decree No. 038-2017-EM is issued - Establish

Regulatory Provisions for Environmental Management Instrument to formalize small-
scale mining activities and the Artisanal. Mining regulations were adopted for the
Instrument for Environmental Management to formalize activities small mining and
artisanal - IGAFOM, established in Article 6 of Decree No. 1336. This standard states that
the IGAFOM aims to adapt the activities of small-scale mining and artisanal mining.
environmental standards, to identify, control, mitigate and/or prevent the negative
environmental impact of mining that develops, and to establish the closures, as
appropriate.

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 NATIONAL UNIVERSITY MOQUEGUA
Professional School of Mining Engineering

CONCLUSIONS

 Artisanal and small-scale mining were driven mining in Peru by the existing
combination between economic survival of people who developed this activity and
geographical opportunity where deposits were positioned.

 While it is clear the intention of the State in resolving conflicts related to mining
informality, by implementing that make viable the formalization process and seek
the eradication of the main bottlenecks that prevent their application, these can not
be consolidated in alternative an administrative simplification that only targets the
rapid execution of procedures, which in turn restricts the powers of the competent
governing bodies, or do not consider essential aspects such as land use in places
where these are developed, or return to the return of a sector management that
far from being beneficial distance further the benefits of development between
different mining categories.

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 NATIONAL UNIVERSITY MOQUEGUA
Professional School of Mining Engineering

BIBLIOGRAPHY

 CALLE, I and Valencia, L. (2017) "Ten SPDA recommendations regarding new

decrees on informal and illegal mining." Peruvian Society for Environmental Law.
Environmental relevance of the SPDA. Lime.

 MEDINA, G. (2016). "Formalizing Small-scale Mining - Why and how?". Better

Gold Project Initiative. Second edition. Lime.

 Ipenza, C. (2012). "Manual for understanding the small-scale and artisanal mining
and legislative decrees related to illegal mining." Peruvian Society for
Environmental Law. Second edition. Lime.

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 NATIONAL UNIVERSITY MOQUEGUA
Professional School of Mining Engineering

News
Pecoy: the most recent copper discovery in Peru
Pecoy: el más reciente descubrimiento cuprífero en el Perú
MINING. Pecoy: Geologists at the Canadian mining company revealed that drilling at
Pecoy has led to the discovery of 420 million tons of ore with an average grade of
0.37% copper.

MINERÍA. Pecoy: geólogos de la minera canadiense revelaron que las perforaciones

efectuadas en Pecoy han conllevado al descubrimiento de 420 millones de toneladas
de mineral con ley promedio de 0,37% de cobre.

Proyecto hermano
Brother project

Pembrook Mining has invested more than US $ 12 million in the exploration of Pecoy
and plans to invest up to US $ 2.5 million to explore Tororume.

Pembrook Mining ha invertido más de US$12 millones en la exploración de Pecoy y

planea invertir hasta US$2,5 millones para explorar Tororume.

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